Japan posts fourth monthly trade deficit

Container ships arrive at a pier in Tokyo Bay yesterday. Japan’s trade deficit for last month nearly doubled to US$6.7 billion, official data showed, as shipments to Europe sank amid the global slowdown and a territorial spat with China hurt exports.

Photo: AFP

Japan logged its fourth straight monthly trade deficit last month as the European debt crisis and strained business ties with China over a territorial dispute reduced exports.

The Japanese Ministry of Finance said yesterday that imports exceeded exports by ￥549 billion (US$6.7 billion), the biggest deficit for last month since at least 1979, when the ministry began keeping comparable records.

Exports for the month fell 6.5 percent from a year earlier to ￥5.150 trillion, while imports slipped 1.6 percent to ￥5.699 trillion.

For years, Japan ran huge trade surpluses, which frequently caused trade friction with the US.

However, since last year, Japan has been regularly registering trade deficits as it shifts more production overseas and faces greater competition from Asian rivals such as Taiwan, South Korea and China.

The strong yen as also made it expensive for Japan’s major automobile and electronics makers to produce at home.

This year, Japan has registered trade deficits every month except February and June.

Japan’s trade balance has also been affected by increased imports of fuel to offset the shutdown of nearly all its nuclear plants in the wake of last year’s atomic disaster in Fukushima.

Exports of cars, TVs and audio-visual equipment were particularly down.

A spat with China over disputed islands in the East China Sea that are controlled by Japan, but also claimed by Taiwan and China, led to anti-Japanese riots in September and boycotts of Japanese products in China.

Automakers such as Toyota Motor Corp have suffered a sharp drop in sales in China.